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Region's reputation and the price of regional products: a hedonic analysis of Portuguese quality cheese

  • José Cadima Ribeiro

    ()

  • José Freitas Santos

    ()

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    Resources (tangible and intangible) can be mobilized to increase region's reputation and image giving a competitive advantage to certain products with origin in that region. The returns of a region's resources depend upon the ability of local firms to appropriate the rents earned and whether the consumers value the characteristics of the region that are associated with the product, being disposed to pay a price premium. The estimation of a hedonic price function, which relates the price of Portuguese regional cheeses to its various attributes provided empirical support to test the importance of designation of origin on price. The study showsthat some designations of origin and milk types have a significant impact on price, while retailer format (hypermarket versus online store)and cheese characteristics (cured versus not cured)are nor significant. Specifically, while cheeses from regions of Minho e Trás os Montes and Alentejo are expected to have price premiums, cheeses from regions of Beiras and Ilhas are expected to have discounts. Also, cheeses made with mixed milk and goat's and ewe's milk all have positive effects on price regarding cow's milk (base category).

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    File URL: http://www-sre.wu-wien.ac.at/ersa/ersaconfs/ersa04/PDF/41.pdf
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    Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa04p41.

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    Date of creation: Aug 2004
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    Handle: RePEc:wiw:wiwrsa:ersa04p41
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    1. Oczkowski, Edward A., 1993. "A Hedonic Price Function for Australian Premium Table Wine," 1993 Conference (37th), February 9-11, 1993, Sydney, Australia 147769, Australian Agricultural and Resource Economics Society.
    2. Combris, Pierre & Lecocq, Sebastien & Visser, Michael, 1997. "Estimation for a Hedonic Price Equation for Bordeaux Wine: Does Quality Matter?," Economic Journal, Royal Economic Society, vol. 107(441), pages 390-402, March.
    3. Martin S Roth & Jean B Romeo, 1992. "Matching Product Category and Country Image Perceptions: A Framework for Managing Country-of-Origin Effects," Journal of International Business Studies, Palgrave Macmillan, vol. 23(3), pages 477-497, September.
    4. Tito Bianchi, 2001. "With and without co-operation: two alternative strategies in the food-processing industry in the Italian South," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 13(2), pages 117-145, April.
    5. Saeed Samiee, 1994. "Customer Evaluation of Products in a Global Market," Journal of International Business Studies, Palgrave Macmillan, vol. 25(3), pages 579-604, September.
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